ABB Board Proposes Peter Voser as Chairman -- Update

By John Revill 

ZURICH-- ABB Ltd. said Thursday it was proposing the former chief executive of Royal Dutch Shell PLC as its next chairman, a move that comes as the power and technology giant embarks on a new five-year strategy.

ABB said Peter Voser would replace Hubertus von Grünberg, the current chairman, if elected at the company's annual general meeting next April. Mr. von Grünberg, 72, has been chairman since May 2007 and won't stand for re-election, the company added.

The nomination marks a return to ABB for Mr. Voser, who served as the company's chief financial officer from 2002 to 2004. At Shell, he served as chief financial officer and later as chief executive.

"I am delighted that Peter Voser has accepted to stand for election as chairman of ABB," Mr. von Grünberg said in a statement. "Peter Voser brings intimate knowledge of ABB and its key markets as well as an excellent track record as a leader in large, global organizations."

In his role, Mr. Voser will work with ABB Chief Executive Ulrich Spiesshofer, who in September unveiled a five-year strategy that minimizes risky projects which have caused the company problems in recent years. ABB will also focus on high-growth markets and collaboration with other companies, like a recently announced joint venture with Hitachi Ltd. to develop high-voltage power grids in Japan.

The strategy comes amid concern that the global economic and political climate has clouded the company's outlook for the near term. In October, it cautioned that slow growth in Europe, political tension around the world and the Ebola epidemic in Africa had the potential to weigh on business.

Investors welcomed Mr. Voser's nomination. Shares of ABB shares rose 2.4% in midday trading, outpacing the blue chip Swiss Market Index's 1.9% rise.

Analysts said Mr. Voser's previous experience at ABB suggested a seamless transition.

Panagiotis Spiliopoulos, an analyst at Bank Vontobel in Zurich, said Mr. Voser played a key role in ABB's turnaround in the early 2000s when the company was forced to restructure after being hit by huge debt, asbestos litigation and the economic slowdown.

"Peter Voser brings a wealth of relevant experience and a strong record, " Mr. Spiliopoulos said, rating ABB a buy.

Write to John Revill at [e-mail]

Access Investor Kit for ABB Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=CH0012221716

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B03MLX29

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B03MM408

Access Investor Kit for Hitachi Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=JP3788600009

Access Investor Kit for ABB Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US0003752047

Access Investor Kit for Hitachi Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US4335785071

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US7802591070

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US7802592060

Subscribe to WSJ: http://online.wsj.com?mod=djnwires